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PUC Approves Voluntary Time-of-Use Rate For PPL Customers
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The Public Utility Commission this week approved a voluntary program where PPL will offer customers a rate based upon the time of day they use electricity.
The Commission voted 5-0 to allow a voluntary time-of-use program for PPL customers and to approve a motion by Commission Chairman James H. Cawley that established that PPL will recover all costs specific to the TOU program through its default service tariffs. Chairman Cawley also issued a statement that noted areas for improvement in future TOU filings including the adoption of automation and technology to enhance consumers’ ability to respond to changes in market prices. “This will give customers another option for controlling what they spend on electricity,” said Robert M. Geneczko, vice president of Customer Services for PPL Electric Utilities. “Of course, customers have the opportunity to save even more money by switching to another supplier.” Under time-of-use rate options, the generation price a customer pays varies by season and by time of day (time-of-use pricing does not apply to distribution or transmission charges). Prices are lower during “off-peak” hours, like nighttime, weekend and morning hours. They are higher during peak hours of electricity use, when demand is greatest. By comparison, customers on traditional rates pay the same generation price around the clock. Because time-of-use prices differ throughout the day, customers have an opportunity to save money by shifting electricity use to off-peak hours. Steps could include adjusting thermostats during peak hours; installing timers on water heaters, pool pumps, dehumidifiers and other equipment to make sure they’re off during peak times; and postponing laundry and other activities until off-peak hours when demand and prices are lower. Geneczko said the new options are not meant to compete with offers made by competitive suppliers. “Customers may very well find better prices and spend less by switching to a competitive supplier,” he said. “We encourage customers to look at all of their options and make the choice that is best for them.” Geneczko said time-of-use pricing options are possible because of investments the company has made in advanced metering in recent years. “We’re able to automatically track and share monthly, daily and hourly electric usage information with all of our customers,” he said. “That allows us to offer new choices, but it also allows competitive suppliers to offer their own time-of-use prices, if they choose.” The key is being able to track hour-by-hour power use and bill customers accordingly, said Geneczko. Customers will be able to start signing up for the new options in March. The change to time-of-use pricing for those who enroll will begin in June. Additional information will be included on the web and with customer bills in March.
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2/1/2010 |
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